Singapore’s Big Loser for the Week: Yuuzoo Corporation Ltd

Credit: hobvias sudoneighm

Editor’s note: Additional information supplied by Yuuzoo have been added to the article. They are given in italics.

This week’s big loser is none other than Yuuzoo Corporation Ltd  (SGX: AFC). Shares of the e-commerce and social media outfit had plunged by 22% since last Friday to close at S$0.21 yesterday.

With the Straits Times Index  (SGX: ^STI) only losing 0.6% during the same period, Yuuzoo has certainly stolen the spotlight – for the wrong reason.

Yuuzoo “builds mobile-optimised and device agnostic targeted social e-commerce networks for businesses and consumers, either rolling them out on their own or together with businesses or brands.” The company was formed through a reverse takeover of W Corporation Ltd in 2014. Those interested can read more about the firm here.

On Monday this week, a rumour that was going around about Yuuzoo taking over a company had been squashed. Boxhill Technologies PLC, a lottery and e-commerce company listed in the United Kingdom, was the company in question.

Boxhill came out to clear the air and mentioned that “there is no truth in this speculation and that it is not in discussions with YuuZoo nor has it received an approach from YuuZoo regarding a possible transaction with Boxhill.” Yuuzoo has also commented that it has no knowledge of the matter.

On the same day, Yuuzoo made an announcement that it has appointed Bernard Yun Guhan as the Head of Legal and will oversee the overall legal and compliance matters of the company. He takes over Latika Rana who stepped down because of “personal reasons”.

The firm, which did not have any earnings to speak of for the full year ended 31 December 2014, is now selling at 2.4 times its historical book value.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.